I am worried sick. I have been in a single IVA for the past 5.5 years with 5 payments left. I checked my emails this evening after a stressful day of nursing to find an email from Stepchange to say they have been notified by a firm called IVA watch acting on behalf of Elderbridge (loan originally with First plus but transferred some years ago) that a £20,00 loan on our property I had declared at the start was “no longer a secured loan” and “if we agree a claim it will increase debt by more than 15% “ and I am potentially in breach of IVA. This is a mystery. How can a loan become unsecured ? I am beside myself with worry and typically both Elderbridge and Stepchange offices are closed for the day so I have a night of worry ahead. Any ideas of what could have happened most welcome!

I had a first plus loan secured on the house. During the iva due to my circumstances I had to have the house voluntary repossessed because first plus would not allow me to sell the house as there would be a £17k shortfall. So I had it repossessed.
This then meant there was no house to secure the loan on therefore became unsecured.
To take care of this loose end my IVA company got another creditors meeting together and the shortfall was accepted as a variation. My penalty of you like was yo pay another year's worth of payments to IVA which is a standard thing anyway if you have no equity go release in the iva.
Not sure from the information you've provided whether this is a similar situation to you. But yes first plus are now sold onto elderbridge.

I cannot understand why the new lender would relinquish the protection of having security on the house. Presumably you have been making the payments.

Because the loan will increase your unsecured debt by more than 15% this has to be put to creditors under the terms of your IVA. I would have a chat with your IP to see if you can make the deal sweeter with the existing creditors in your IVA: Obviously the current amount you have been repaying to Elberbridge will be added to the IVA repayment, so the creditors would have a few months of increased payments ... you could also offer to extend for a year (at the increased rate).

Thinking on this a little bit more. I would ask your IP to contact Elderbridge and ask why --- and to point out that, currently, they have been getting full repayments at the agreed rate. If they relinquish the security they could be governed by the IVA and stand to get a fraction back. They would be shooting themselves in the foot by doing this.

Thank you all for your helpful advice.
I rang Elderbridge who confirmed the loan is secured. Common sense told me that no-one in their right minds would relinquish a secured loan. We have never missed a payment so not sure what the issue was- presumably an admin error, but stressful in the interim and another reason I can't wait for the six years to come to a close!

Thank you all for your helpful advice.
I rang Elderbridge who confirmed the loan is secured. Common sense told me that no-one in their right minds would relinquish a secured loan. We have never missed a payment so not sure what the issue was- presumably an admin error, but stressful in the interim and another reason I can't wait for the six years to come to a close!